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Organizational behaviour is defined as the way in which the people in an organisation behave with each other. The Unit 3 Organizational Structure & Behaviour Assignment CAPCO focuses on organizational behaviour taking example of CAPCO. The report has analysed the relationship between organizational structure and culture and the different approaches to management and leadership. Report has also identified the ways of using motivational theories in organizations. The study has also focussed on the mechanisms for developing effective teamwork in organization. Organisation considered for the study is CAPCO which is a leading international provider of technology management, managed services and consulting. It has 20 offices around the world and over 2000 employees. It is 27th position among 100 best companies list. The employees of CAPCO think differently and are creative in solving problem. The employees of CAPCO have knowledge, excellence, commitment, integrity and respect. It has very large customer base over 70% of global financial services.
Organizational culture consists of components such as norms, beliefs, mutual assumptions and attitude. Organizational culture is significant because it develops a frame of reference for interpretations, perceptions and actions of organization’s member (Schein, 2004). Thus, organizational culture influences company’s strategy, leadership style, organizational learning, employee reward system, knowledge management, commitment, etc. Organizational structure is the pattern of interactions and actions of organizational members with the objective to achieve goal. Organizational structure is significant because it integrates and differentiates the activities of individual organizational member. The organizational culture and structure has both positive and negative effect on the performance of the organization. CAPCO is a leading company in providing technology solutions, managed services and consulting for financial sector. CAPCO has a team driven and non-hierarchical flat structure. This organizational structure is adopted as it suits the entrepreneurial and innovative culture of the organization. Within the flat organizational structure of the organization, matrix structure is incorporated as the employees work on a specific project for a period and after completion of project, they switch to another project (Yukl, 2010).
The organizational structure of CAPCO nurtures creativity and flexibility in organization. This structure motivates every employee to access coaching and advice from others. The organizational culture of CAPCO is built on four key pillars which are opportunity, reward and performance, work, and learning and experience. CAPCO provides opportunity of personal growth to its employees. It is an organization which recognizes and reward performer. It provides challenging work environment to employees to test their skills. It believes in learning from sharing. Coco Cola Great Britain (CCGB) is presently producing and selling 18 brands and 82 different drinks. It’s headquarter is in London and it has 134 employees in it is headquarter who are responsible for its branding and marketing (Alvesson, 2002). The organizational structure of Coco Cola is Separate International Division Structure as the international staffs of Coco Cola operates in isolation and separately from its head office. It helps the company to control its all divisions in five continents which have separate vice-presidents.
The key features of organizational culture of Coco Cola are accountability, quality, diversity, collaboration, integrity, passion and leadership style. As Coco Cola is operating globally, thus the workforce of company is diverse and it is able to understand, operate and embrace in multi-cultural workforce.
Table1Difference between organizational structure and culture of two organizations
Flat and matrix structure as it deals in different projects
Functional or Division Structure as it is operating in various countries and dealing with large product line.
The key pillars are opportunity, reward and performance, work, and learning and experience.
The key pillars are accountability, quality, diversity, collaboration, integrity, passion and leadership.
Table 2 Similarities between organizational structure and culture of two organizations
Both the organizational believe in free communication among employees
Both the organizations believe in developing a culture to nurture its employees as an asset.
Organizational culture influences organizational structure by its interpretive schemes formation by top management which defines the organizational structure of company (James.et.al.1990). Thus, organizational culture provides the frame of reference for formation of organizational structure. The impact of organizational culture can be positive or negative on the performance of company. When the organizational culture and its structure are compatible, then the effect is positive else negative. On the other hand, organizational structure directs the behaviour of employees in an organization. Organizational structure determines the manner and method of completing task, taking decisions and interacting with one another. If the organizational structure is compatible with organizational culture, it will result into positive behaviour of employees else negative. Cognitive dissonance among employees arises if the organizational structure is not compatible with organizational culture of company (Fiske and Taylor, 1991).
The organizational structure of CAPCO is flat which ensures better control as the chain of command is short and span of control is wide. It ensures effective and better communication in the organization. It reduces many management levels and thus is cost efficient. It fosters quick decision making, effective communication and increases sense of belongingness among employees. The innovative and entrepreneurial culture of CAPCO supports its organizational structure. The culture of CAPCO supports openness, integrity and individuality (Dow, 1988). This organizational culture allows quick and effective performance of tasks, employees become more receptive to change and they easily interact with each other. Thus, both organizational structure and culture of CAPCO raise creativity and flexibility in working environment for employees. There is compatibility between organizational structure and culture of CAPCO which results into better performance of CAPCO.
The individual behaviour of employees is influenced by the belief system of organization’s culture. The norms of the organizations are based on the value and culture of the organization which shape the behaviour of its employees. Organizational cultures are the effective way of directing the behaviour of individual employees toward achieving organizational goal. There are four cultures defined by Double S Cube and suggested that companies migrate from one culture to other (Goffee and Jones, 1998). On this basis, the organizational culture of CAPCO is communal which encourages deep commitment, clear vision and high energy among employees. CAPCO encourages team work which brings people from different department together. The organizational culture of CAPCO encourages effective and open communication. They encourage employees to put forward entrepreneurial ideas. It also uses social media to communicate. This helps in creating positive relationship among employees. It develops behaviour of taking risks and thinking differently among employees. The commitment of employees toward organization is influenced by the culture of organization (Cohen, 1993). Commitment defines the behaviour of employee to help each other, developing creativity among employees and relating to organizational goal. Organizational culture foster the actions of individual employees committed to corporate values and philosophies. It develops a tendency among employees to take initiative and solve their problems on their own.
CAPCO reflects various leadership styles within company on the basis of necessary tasks and need of department. The different leadership styles at CAPCO and their effectiveness is discussed below-
Table 3: Comparison between Leadership at CAPCO
Basis of comparison
Management motivates employees to participate in decision making process
Management rewards employees to motivate them
Management motivates employees through communication and their charisma
Emphasis on employee participation
Emphasis on relationship between management and employees
Emphasis on needs, morals, ideals and values of employees
Quick decision making
Employee participation and belongingness
The theory of Scientific Management is based on work of F W Taylor. He gave four principles of management which has shaped the present business environment of UK also. One of the principles of Scientific Management is to develop scientific method of doing work and replacing traditional method with them (Boone & Bowden, 1987). It has resulted into business practice in UK which involves quality management, increasing efficiency, increasing customer satisfaction and reducing waste. The second principle of Scientific Management is to develop scientific method of selection and development of employees. This has resulted into introduction of hiring the right person for right position and introduction of training and development programs. There are various organizations today which are providing services relates to recruitment and training. The third principle of scientific management is to adopt scientific method to analyze the training needs of employees (Parker and Lewis, 1995). Today, the organizations of UK have identified the need of keeping employees motivated, healthy and happy. They also ensure the safety of their employees at workplace. The fourth principle of scientific management is to divide the work into four functions of management planning, organizing, leading and controlling. This principle is adopted by almost every organization of UK.
Scientific management has also shaped the practices of accounting today. The initiative of quality management adopted by various organizations is also an example of application of scientific management (Parker and Lewis, 1995). Today the organizations of UK recognize the importance of lesser working hours for employees which was suggested by F W Taylor. Scientific management has also lead to negative impact on workforce due to performing monotonous work resulting into poor job satisfaction (Robbins & Barnwell, 2002). The Human Relation theory was given on the basis of Hawthorne experiment in 1920. It believes that human needs are not only materialistic but also social. This experiment found that the efficiency of the worker would be enhanced if there is improved incentive system and shorter working hours with breaks for lunch and rest. The human relation theory has changed the work environment of organizations of UK and worldwide. The change in social climate of work place has resulted into improved morale of employees and increased efficiency.
The main approaches of management used by CAPCO are as under-
Employee motivation is set of internal and external factors which enhances the performance of employee. The managers are required to understand those factors, expectations or needs of employee which motivate them to perform better. The important factors which influence employee motivation level are needs of employee, supervision, responsibility, working environment, rewarding, feedback, effort and employee’s training and development (Luomanpaa, 2012). Leadership styles which influences motivation are as follows-
Abraham Maslow in 1943 gave the need hierarchy theory. This theory is applicable in management in motivating employees. According to Maslow there are six levels of needs of human. An individual moves to next level only when first need is fulfilled. To motivate an employee, management is required to identify his level of need.
Frederick Herzberg gave Herzberg two-factor theory which defines two sets of factor which are hygiene, the absence of which causes dissatisfaction and recognition which cause job satisfaction (Herzberg.et.al, 2015).
Table 4 Compression between Maslow's and Herzberg theory
Base of comparison
Maslow’s need hierarchy theory
Herzberg factor theory
Based on concept of human satisfaction and need
Based on motivation factors such as opportunity to grow, recognition and achievement
Basis of theory
Based on hierarchy of needs of human
Based on motivational and hygiene factors
Nature of theory
Descriptive nature and based on experience
Prescriptive nature and based on actual information
Application of theory
It is widely accepted and applicable
Its applicability is comparatively low
Unsatisfied specific needs
Hygiene at lower level and recognition in upper level
Motivation is a process which provides employees purpose to perform. Management is about getting things done through employees i.e. achieving organizational goal. If the employees are de-motivated, then they will lag behind in achieving the required goal. In this competitive environment, organization cannot manage to lag behind. They have to motivate employees to perform better. There are various theories to motivate employees (Herzberg.et.al, 2011). These theories provide an insight to management to understand the factors motivating employees. Motivational theories act as tool for managers to motivate employees to perform better. Today organizations are also realizing the importance of retaining and motivating employees.
Lack of understanding and knowledge of motivational theories will result into unsuccessful attempts of management in motivating employees. They will consider incentives being the only factor to motivate employees and will increase the cost of organization without any enhancement in productivity or efficiency (Koopman and Wierdsma, 1998). It can be said that if internal human resource is satisfied, then external customers will be automatically satisfied. The organizational performance is a feature of motivation and ability. An effective motivation system of organization will result into enhanced performance. It also requires an effective system to evaluate the performance of employees, benchmarking and policy of training and development and policy of reward. Thus, appraisal system, performance management, motivation are inter-connected. Thus, the main tools for motivation for manager are good communication, providing financial resources, job enrichment, removing organizational barrier, loyalty, respect, trust, recognition, praise and approval (Weiner, 2013). Thus, there is no set way to motivate employing but motivational theories help the managers to understand the ways the motivate employees to enhance organizational performance.
Group can be defined as two or more people interacting or working together for same goal. Group dynamics is the communication among members of group. It is the social characteristics of human to interact among themselves. There are three types of nature of group which are normative, group building and team dynamics. The normative nature of group defines the way team is managed and performance is carried out. Group building is the way of training members by role play and self-managed groups (Yukl, 2010). Team dynamics is the internal nature of the groups.
At CAPCO, there are formal and informal groups in the organization. Formal groups are formed by the members working on the projects and informal groups are formed when members collect for a social event (Wu.et.al, 2011). The team at CAPCO is effective team as they share common goal, support and respect each other, high commitment to accomplish goal, has clarity of roles and responsibility, good at sharing thoughts and ideas and has open communication system. The team at CAPCO is diverse and they work together and share skills, strength and experience. Group behaviour within CAPCO includes group viability, satisfaction among members and high level performance. The teamwork in CAPCO is successful because of well leadership, useful communication, diversity and plan for disagreement decision.
Teamwork is process which permits ordinary people to achieve extraordinary goals (Scarnati, 2001). The attributes of effective teamwork are commitment to achieve goal; interdependence team members have interpersonal skills; positive feedback and open communication among members; appropriate team composition; and commitment to team accountability. Factors that promote effective teamwork in CAPCO are as follows-
The impact of technology on team functioning within CAPCO can be positive or negative. The technology which have positive impact on team functioning are mobile phones, e-mails, groupware, blackberry and computers.
The organizational structure of CAPCO is flat which ensures better control as the chain of command is short and span of control is wide. The organizational culture of CAPCO encourages effective and open communication. CAPCO reflects various leadership styles within company on the basis of necessary tasks and need of department. At CAPCO, there are formal and informal groups in the organization. Group behaviour within CAPCO includes group viability, satisfaction among members and high level performance. The teamwork in CAPCO is successful because of well leadership, useful communication, diversity and plan for disagreement decision. Team members of CAPCO have interpersonal skills; positive feedback and open communication among members; appropriate team composition; and commitment to team accountability.
Journals and Books
Alvesson, M. (2002).Understanding Organizational Culture. London, UK: Sage.
Aaker, D.A. and Joachimsthaler, E., 2012. Brand leadership. Simon and Schuster.
Boone, L.E., & Bowden, D.D. (1987). Great writings in management and organisationalbehaviour (2nd ed.). New York: Mcgraw-Hill, Inc. p. 47.
Cohen, A. R. (1993). The portable MBA in management. New York: John Wiley & Sons, Inc.
Daft, R., 2014. The leadership experience. Cengage Learning.
De Guinea, A.O., Webster, J. and Staples, D.S., 2012. A meta-analysis of the consequences of virtualness on team functioning. Information & Management, 49(6), pp.301-308.
Dow, G.K. (1988). Configurational and Coactivational Views of Organizational Structure. Academy of Management Review, 13(1), pp. 53-64.
Fleishman, E. and Harris, E. (1962). “Patterns of leadership behavior related to employee grievances and turnover,” Journal of Personnel Psychology, vol. 15, pp. 43-56,.
Fiske, S.T. and Taylor, S.E. (1991).Social Cognition. New York, NY: McGraw-Hill.
Goffee, R., & Jones, G. (1998). The character of a corporation: How your company's culture can make or break your business. New York: HarperCollins Publishers, Inc.
Herzberg, F., Mausner, B. and Snyderman, B.B., 2011. The motivation to work (Vol. 1). Transaction publishers.
House, R.J (1996) “Path-goal theory of leadership: Lessons, legacy, and a reformulated theory,” Journal of the Leadership Quarterly, vol. 7, pp. 323-352,
Martin, J. (2002). Organizational Culture: Mapping the Terrain. London, UK: Sage.
Nyland, C. (1995). Taylorism and hours of work.Journal of Management History, 1, 2, 8- 25.
Koopman, P. L and Wierdsma, A (1998) “Participative management,” Personnel Psychology: Handbook of Work and Organizational Psychology, Hove, UK: Psychology Press, 1998, vol. 3, pp. 297-324.
Luomanpaa, R (2012) “Employee motivation at Tommy Bartlett, Inc,” B. thesis, Dept. Applied Sciences, Haaga- Helia Univ., Wisconsin Dells, USA,
The report has analysed the relationship between organizational structure and culture and the different approaches to management and leadership. Report has also identified the ways of using motivational theories in organizations, Get the best Locus Assignment Help support all assignment help uk